The Agricultural Service Cooperative (SOC) is the most promising organizational and legal form of management, capable of uniting the activities of small agricultural producers in the world. In a broad sense, the activation of the cooperative movement helps to generate income not only from production, but also subsequent stages of the movement of products to the final consumer. The foreign experience of developed countries testifies to the cohesion of small farmers in the production, processing, storage, supply, sale of products and services through cooperative structures. Formation and functioning of a closed circle of participants makes the activity of any commercial intermediary structures impossible.
The association of small agricultural producers in the SOC and cooperative associations is one of the directions of ensuring the competitiveness of products on the domestic and foreign markets. The cooperation provides them with significant opportunities for joint use of the material and technical base, reducing the cost of production and services provided, developing new sales markets, generating additional revenues, contributing to higher employment and the welfare of the rural population. In addition, membership in the JCC opens significant prospects for small producers to receive grant support from international technical assistance projects, whose donors are the European Union, the United States, Canada and other developed countries.
Practice shows that agricultural service cooperatives and cooperative associations have not received wide distribution and development in Ukraine. The lack of a clear tax mechanism and the inconsistency of the tax policy in various regulatory and legal acts hampered the development of service cooperative entities. Through the widespread mistakes that developers make in the constituent documents, the territorial bodies of the State Fiscal Service often refuse to legal entities in their inclusion in the Register of non-profit institutions and organizations. There is a need for an in-depth study of the regulatory framework governing the acquisition by a business entity of the status of a non-profit organization.
agricultural service cooperative, cooperative association, nonprofit organization, small agricultural commodity producers